Holiday Pay

Holiday pay (Lomapalkka) is the compensation an employee receives for the period of their annual holiday. According to the Act, this must be at least the employee's regular or average pay, including any fringe benefits. It is typically paid before the holiday commences to ensure financial stability during the time off.

The 'vakantiebijslag' (holiday pay or holiday allowance) is a statutory entitlement under the WML, amounting to at least 8% of an employee's gross wages earned over a specific period. It is typically paid out annually, usually in May or June, to provide additional funds for holiday expenses and is a distinct component of remuneration.